The success of startup GoHenry, which raised just shy of £4m and surpasses the previous record of £3.5m for JustPark, has spurred crowdfunding platform Crowdcube to call for the existing limit on the value of investments to be raised.
Early-stage businesses can currently raise up to €5m (£3.9m) via equity crowdfunding in the UK.
"We are leading a charge to convince the EU to raise its limit on the amount of finance that any business can raise without a prospectus. If the €5m limit was lifted, GoHenry could have raised significantly more investment to help it expand into Europe, preparing millions of children for a cashless digital future," said Crowdcube chief executive and co-founder Darren Westlake.
Brussels is currently considering proposals for doubling the threshold to €10m across the area.
More than 2,000 investors ploughed cash into GoHenry for a share of 15.9 per cent equity in the business. The final amount it raised was nearly double its initial £2m target.
“We’re delighted to give the parents that love our product a chance to be a part of our future success too. We are a business that was built by parents so it’s only natural that it continues to be owned, managed and grown by parents as well," said GoHenry co-founder and chief operating officer Louise Hill.
"As our economies become increasingly cashless, and as purchasing moves online, children need to be able to manage their money in a digital age," she added.
GoHenry, which provides a pre-paid debit card to kids and an app to manage their pocket money, has more than 200,000 members and is growing by 10,000 each month. The startup will spend the money on expanding into Europe, as well as increasing the number of users in the UK and on product development.
GoHenry is the 38th business to raise more than £1m on Crowdcube, breaking JustPark's record set last year to take the top spot in the list of largest ever crowdfunding raises. Mondo boasts the record for the fastest ever raise, hitting £1m in just 96 seconds on Crowdcube.